World Desk, AnyTV, Beijing
Published by: Harendra Chaudhary
Updated Fri, 04 Mar 2022 01:31 PM IST
Summary
According to experts, till now investors used to invest in gold only when the rate of inflation rose above a certain threshold. But the way America and Europe have adopted the method of confiscating the assets of other countries, due to which many countries have started seeing money in dollars as risky…
The way Western countries have confiscated Russia’s assets, in view of this, China is now looking for an alternative to the dollar for investment. The US also permanently confiscated Afghanistan’s assets worth about $3.5 billion before Russia. Experts say that this has deepened apprehension in many countries of the world about keeping wealth in Western countries and keeping their money in dollars.
This fear tormented China
Kenneth Rogoff, former chief economist of the International Monetary Fund, has said that the seizure of Russian government assets is an unprecedented move. There has been no such precedent after the Second World War. This has instilled in China the fear that the same could be done to its assets on the issue of Taiwan. Rogoff said, “Seizing money stashed in a major central bank is an extremist move.” This is an era changing opportunity. That is to say, if you want to see the long-term look of the dollar’s dominance over the world economy, trust me, China is not sitting there. After all, they have reserves of about three trillion dollars.
But experts say that China’s problem is that it lacks an alternative. One option he has is to invest in gold. But there is not as much gold in the world market as China has. According to a report published in the website Asia Times, China has foreign exchange worth $ 3.2 trillion. Whereas the amount of gold in the reserves of all the central banks around the world is equal to $ 2.3 trillion. On Wednesday, the price of gold in the international market was $ 1,944 an ounce. According to this price, the amount of gold that has been extracted from the mines in the world so far will be worth $ 17 trillion. China holds five percent of the total gold reserves in the world.
China will buy gold with dollar
According to experts, till now investors used to invest in gold only when the rate of inflation rose above a certain threshold. But the way America and Europe have adopted the method of confiscating the assets of other countries, due to which many countries have started seeing money in dollars as risky. China has two trillion dollars of Treasury bonds in the US. In the event of a dispute, the US can confiscate this amount at any time. Therefore, now the option of buying gold in China with dollars as much as possible is being seriously considered.
Chinese economist Gao Desheng said in a commentary published on the Chinese website Guancha.cn on Tuesday – ‘The US and Europe should understand that sanctions are a double-edged sword. The sanctions would hurt Russia, but it would also hurt the interests of Europe. The point to understand for the US is that repeated use of sanctions will accelerate the process of ending the world’s dependence on the dollar. It’s like digging a dollar’s grave.’
Expansion
The way Western countries have confiscated Russia’s assets, in view of this, China is now looking for an alternative to the dollar for investment. The US also permanently confiscated Afghanistan’s assets worth about $3.5 billion before Russia. Experts say that this has deepened apprehension in many countries of the world about keeping wealth in Western countries and keeping their money in dollars.
This fear tormented China
Kenneth Rogoff, former chief economist of the International Monetary Fund, has said that the seizure of Russian government assets is an unprecedented move. There has been no such precedent after the Second World War. This has instilled in China the fear that the same could be done to its assets on the issue of Taiwan. Rogoff said, “Seizing money stashed in a major central bank is an extremist move.” This is an era changing opportunity. That is to say, if you want to see the long-term look of the dollar’s dominance over the world economy, trust me, China is not sitting there. After all, they have reserves of about three trillion dollars.
But experts say that China’s problem is that it lacks an alternative. One option he has is to invest in gold. But there is not as much gold in the world market as China has. According to a report published in the website Asia Times, China has foreign exchange worth $ 3.2 trillion. Whereas the amount of gold in the reserves of all the central banks around the world is equal to $ 2.3 trillion. On Wednesday, the price of gold in the international market was $ 1,944 an ounce. According to this price, the amount of gold that has been extracted from the mines in the world so far will be worth $ 17 trillion. China holds five percent of the total gold reserves in the world.
China will buy gold with dollar
According to experts, till now investors used to invest in gold only when the rate of inflation rose above a certain threshold. But the way America and Europe have adopted the method of confiscating the assets of other countries, due to which many countries have started seeing money in dollars as risky. China has two trillion dollars of Treasury bonds in the US. In the event of a dispute, the US can confiscate this amount at any time. Therefore, now the option of buying gold in China with dollars as much as possible is being seriously considered.
Chinese economist Gao Desheng said in a commentary published on the Chinese website Guancha.cn on Tuesday – ‘The US and Europe should understand that sanctions are a double-edged sword. The sanctions would hurt Russia, but it would also hurt the interests of Europe. The point to understand for the US is that repeated use of sanctions will accelerate the process of ending the world’s dependence on the dollar. It’s like digging a dollar’s grave.’